Startup:

 Global  Auto  Enterprises  

Market  Segmentation  &  TAM  

1.  Description  

Global Auto Enterprises (GAE) is an auto parts distributor based in

Miami, FL. We import small auto parts and auto accessories from China

and sell them through direct sales, website, and franchisees to small auto

parts retailers in US.

2.  Market  Segmentation  

Market Opportunity: Established in 2008, GAE has acquired a

network of 2,750 suppliers in China and 3,800 small auto parts retailers in

US. With the expansive network, GAE has the ability to bridge the gap

between those two parties. GAE can consolidate the demands of small

auto parts retailers in US and generate a large volume for Chinese auto

parts suppliers. As the mark-up and distribution channels are cut down,

GAE can reduce the cost significantly and sell directly to small auto parts

retailers with discounted price. At the same time, GAE will increase the

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profit of its suppliers by increasing their sales revenue and marginal

profits. GAE experience of building and maintaining face-to-face

customer loyalty will ensure its ability to expand existing customer base

and acquire new territories in a short-time period.

Market Size & Customers: GAE’s target customers are

independent auto parts retailers. An independent auto parts retailer

generally refers to a privately owned auto store as opposed to those

owned publicly through a distribution of shares on the market.

Independent businesses most commonly take the form of sole-

proprietorships. "Independent" is frequently used to distinguish one-of-a-

kind businesses from corporate chains or conglomerates.

Most auto part stores, percentage wise, are solely owned by

individuals who may or may not operate under national names such as

NAPA. For example, an independent auto parts store in Winder Georgia

is legally named Winder Auto Parts, Inc., but they operate under the name

of NAPA Auto Parts.

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 Beachhead: GAE has already established a network in 17 states of

the southeast region, which will be the beachhead market to focus on.

With average annual revenue of $2,000 from a single store and 500 stores

per state, the beachhead markets will generate annual gross sales of $17

million.

TAM  

The overall auto parts wholesaling market is $1.25 billion in annual

revenue, with $7.5 billion profit and 9,682 current players. The demand

includes a broad line of products such as performance parts,

electrical/electronic components, powertrain system, thermal systems,

and other parts etc.

GAE will focus on the 9.2% segment providing small auto parts

and accessories. This segment transfers to a market size of $115 million

annual revenue.

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